Lloyds cashback scheme aims to increase the number of places where customers can withdraw money
In partnership with Visa, the Lloyds cashback scheme will boost access to cash,. It will see local retailers paid to offer cashback to customers in their stores.
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Currently business owners do not receive a fee when providing cashback to their customers. The scheme will therefore offer more support to retailers as it increases where customers can access cash.
The bank highlighted that this development is not a substitute for ATMs or branches. The Lloyds cashback pilot will target areas of the UK where access to cash is more difficult. Rural or less-affluent areas often rely on a very small number of ATMs.
Furthermore, customers will still have the choice to pay with their cards and mobile devices.
Group Director Retail, Lloyds Banking Group, Vim Maru, said: “Our new cashback pilot, in partnership with Visa, aims to increase the number of places where people can withdraw their money, particularly in those areas which are currently under-served by free-to-use ATMs where a customer’s access to cash may be more vulnerable.
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By GlobalData“The unlocked potential of cashback is obvious, as there are literally tens of thousands of local shops up and down our high streets that already have all the infrastructure in place to offer this service. We need to make it more viable for them offer cashback to all customers, whether making a purchase or not.
“We’re excited to be launching our cashback incentive pilot this spring, and we hope that all banks and card companies will back the scheme and work alongside us and Visa to create a cashback system that rewards retailers and protects access to cash.”
Lloyds cashback scheme: boosting access to cash
Rural residents and businesses face multiple financial barriers in terms of access to key services including access to cash.
The bank hopes that this new scheme will give customers more reason to visit local shops. This is crucial as the UK high street faces unprecedented challenges.
Bank branch closures continue to disrupt access to cash. Subsequently, a growing number of residents cannot get to a branch for miles. The shortage of cash services negatively impacts rural areas and elderly residents who rely on these services being close by.
Just last week the Treasury Committee called for urgent action to prevent the collapse of access to cash as ATM numbers drop and bank branches disappear from the high street.
Managing Director, UK & Ireland, Visa, Jeni Mundy, commented: “Although digital payments continue to grow in popularity across the UK, we know that many people still rely on cash to manage their day-to-day expenditure. This is why we’re extremely pleased to partner with Lloyds Banking Group to increase access to cash.
“This is another important measure to ensure that nobody is excluded from the financial system and underlines our commitment to working with our partners to give people a choice in how they pay – be that with cash, cards, mobile devices or other means.”
